Isn’t it Time for a Change?

It’s time to move on to more positive topics.

After contemplating professional decline and the often disconcerting emotional reboot we face at midlife in the last couple of weeks, I’m ready to talk about the opportunity for reinvention.

Of course, the bad news keeps coming. Over at the Conversation, there’s an article about the real midlife crisis confronting many Americans.

It’s a topic we’ve covered before — the sandwich effect of caring for both our children and parents. Many of us are caught in a distressing financial situation:

It can be best described as the “big squeeze” — a period during which middle-aged adults are increasingly confronted with the impossible choice of deciding how to split their time and money between themselves, their parents and their kids.

The answer seems to be to make more money. But too often, we have to make the hard choice to work less and make less because we need the flexibility:

Insufficient family leave policies force middle-aged adults to decide between maximizing their earning potential or caring for an aging parent. Of those who were working full-time while caregiving more than 21 hours a week for an aging parent, 25% took reduced work hours or accepted a less demanding position.

Maybe by the time the Millennials hit midlife, the workplace will adapt. But it’s not going to happen for us. So, that means it’s up to us.

I spend a lot of time thinking about what’s happening in the world of work (and helping people make a living without a job). And while I am no doubt an advocate for the entrepreneurial life, I honestly think it’s riskier to depend on traditional employment for your income at this particular point in history.

You’re already more likely to be laid off after the age of 50. With AI and automation increasingly poised to eliminate jobs, you run the risk of being blindsided at a point that you simply can’t afford.

You need a better boss. Someone who has your unique interests in mind.

Who better than you?

Keep going-

Brian Clark

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Get a better boss

By Brian Clark

Your boss isn’t likely to be much help with your midlife transition and the financial demands you face. So maybe it’s time to get a better boss — which would be you.

The freedom and flexibility is key, with more than half of freelancers saying there’s no amount of money that would get them to switch to a full-time role. Even better, according to Upwork’s Freelancing in America 2018 study, nearly three-quarters of full-time freelancers report earning more than when they had a full-time job.

More money and greater freedom? Seems like a viable answer to handling the transitory issues of midlife. Of course, there are some key differences between running your own business and having a job.

Keys to freelance success

That’s really the point that matters — you’re running a business. And that means a change in mindset from that of an employee.

Marketing – Your client pipeline if the lifeblood of your business. You’ll want to create a systematic lead generation process so it’s all feast no famine. Don’t make the mistake of only thinking about marketing when the work dries up.

Organization – The flip side of having plenty of clients is that you can make yourself miserable if you don’t implement workflows and processes to stay on top of things. Your clients will be happier, and so will you.

Restraint – No matter how strong your pipeline, your income will fluctuate, so make sure you’ve got reserves in anticipation of slow downs. Keeping your business well capitalized goes a long way toward lessening the anxiety that can come with income volatility.

Create your own platform

While Upwork is great for sharing encouraging statistics about the freelance life, I wouldn’t recommend relying on that type of platform to find work. You’ll find that the clients who use such services are generally looking to pay as little as possible.

You, on the other hand, should charge more than you think you should. And the way to do that is to attract clients with your own marketing (email marketing still works best) that increases your perceived value in the eyes of your clients.

Your existing employer may well be your first client, so don’t rule that out. But just remember, you’re now responsible for your own benefits and the risk of volatility, so you’ll be charging more than the salary you’re leaving behind. No one is going to think you’re worth it until you know you’re worth it first!

This graph shows what it’s actually like to be a freelancer (Fast Company)

Sure signs it’s time to hire a financial planner

By Trudi Roth

Of all the adulting moves, rational midlife money management may well be the most daunting. In other words, it’s easy to procrastinate putting together a long-term plan because our brains don’t exactly care about our future selves.

Pile on top of that the complex relationships that many of us have with money — fueled by emotions like fear, shame and guilt — and it’s easy to get into a loop of anxiety and avoidance.

Moving from knowing that you’ve got to up your financial planning game and actually doing it takes motivation. This can be as simple as stopping ignoring obvious signs that you need professional help when you see them.

When to get help with financial planning

Most of us are facing major life transitions, like sending the kids off to college, helping out our aging parents, or both simultaneously. This is the perfect time to start working with a financial planner — preferably a fee-only fiduciary planner who takes a more holistic view of your circumstances and legally has to prioritize your best interests over their commission.

On the flip side, you might receive an inheritance. Windfalls are wonderful, but they may come with tax implications and don’t necessarily come with a plan to meet your financial needs while honoring your loved one’s legacy.

Workplace shifts are strong signals, too. Gen Xers are moving up the ladder at work and also launching successful startups. Your financial planning needs go well beyond selecting a smart mix for your 401K; maximizing your wealth while minimizing your personal exposure if you own your own business is key at this phase.

External milestones make it easy to see when it’s time to get a financial planner on board. Then there’s the other end of the spectrum: being honest about your own internal situation.

Confidence you can count on

As former latchkey kids, we’re comfortable taking care of ourselves and tend not to complain. That doesn’t mean that we’re confident about what we’re doing … so half the battle is admitting that we need help.

If you find yourself constantly stressing out about money, you’re in good company. About 30% of all Americans find themselves awake at night awash in worry. Investing in a financial advisor who can help plan according to your goals and hold you accountable for taking the steps necessary to reach them pays dividends both financial and in terms of your peace of mind.

And that’s money in the bank.

9 Signs You Need a Financial Planner (IRIS Advisor)